If you have positions that are in the money, it's crucial that you monitor your account and communicate with Ally on Expiration. There are a few choices if you have positions that are expiring in the money: You can close the option position. You can leave the position open. However, if it's in the money, […]

When selling puts with no intention of buying the stock, you want the puts you sell to expire worthless. This strategy has a limited profit potential if the stock remains above strike A at expiration, but substantial potential risk if the stock goes down. The reason some traders run this strategy is that there is […]

Short selling is very different from owning stocks. It's more complex, carries more risk and requires a higher degree of responsibility on the part of the trader engaging in this practice. Before jumping in, you should understand how short selling works and what rules govern your investments, plus the potential risks and rewards involved. Knowing […]

What is short selling, and what’s in it for traders? Short selling flips the old adage: buy low, sell high. Anticipating that a stock’s price will drop, a short seller performs this action in reverse: first they sell high, then they buy low. The tricky part is that the short seller doesn’t actually own the […]

How do you begin short selling as an investment strategy? A number of rules restrict which stocks may be shorted and the necessary conditions for shorting. This means you won’t always be able to short any stock you want, whenever you want. Working with an online brokerage service like Ally Invest ensures you have plenty […]

In the options marketplace, the Greeks have zero to do with classic philosophers or toga parties (unless you're trading from the fraternity house). For option traders, the Greeks are a series of handy variables that help explain the various factors driving movement in options prices (also known as premiums). Many options traders mistakenly assume that […]

A guide to Swing Trading for bullish and bearish traders. Swing Trading is a short-term trading method that can be used when trading stocks and options. Whereas Day Trading positions last less than one day, Swing Trading positions typically last two to six days, but may last as long as two weeks. The goal of […]

One of the biggest mistakes new options traders make is buying a call option in order to try and pick a winner. After all, buying calls maps to the pattern you’re used to following as an equity trader: buy low, sell high, in that order. Options are trickier. Sometimes the underlying stock moves in the […]

Step-by-step guide to online stock trading Buying stock with an online broker is easy – but you do need to know a few points before pulling the trigger on your online trade. Here are some pointers to get you started. Anatomy of a Stock Quote When you pull up a stock quote, the first thing […]

The information contained in this article is provided for general informational purposes, and should not be construed as investment advice, tax advice, a solicitation or offer, or a recommendation to buy or sell any security. Ally Invest does not provide tax advice and does not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances.

Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss. While the data Ally Invest uses from third parties is believed to be reliable, Ally Invest cannot ensure the accuracy or completeness of data provided by clients or third parties.

Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company and a top 25 U.S. financial holding company offering financial products for consumers, businesses, automotive dealers and corporate clients. Ally Bank, the company's direct banking subsidiary, offers an array of banking products and services.

Deposit products ("Bank Accounts" on Ally.com) are offered by Ally Bank, Member FDIC. Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license. Mortgage products are offered by Ally Bank, Equal Housing Lender , NMLS ID 181005. Credit and collateral are subject to approval and additional terms and conditions apply. Programs, rates and terms and conditions are subject to change at any time without notice.

The Ally CashBack Credit Card is issued by TD Bank, N.A.

Options involve risk and are not suitable for all investors. Review the Characteristics and Risks of Standardized Options brochure before you begin trading options. Options investors may lose more than the entire amount invested in a relatively short period of time.

Futures trading services are provided by Ally Invest Futures LLC member NFA (ID # 0315389). Ally Invest Futures LLC provides commodity and Index futures product trading on an introducing broker basis with Wedbush Futures, a division of Wedbush Securities, Inc. Futures accounts are held and maintained at Wedbush Futures, who serves as the clearing agent. Wedbush Securities Inc. is registered with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA) (ID # 0086156). Trading privileges are subject to review and approval. Not all clients will qualify. View all Futures disclosures

Forex and futures accounts are NOT PROTECTED by the Securities Investor Protection Corporation (SIPC).

Securities, Forex, futures, options and other leveraged products involve significant risk of loss and may not be suitable for all investors. Products that are traded on margin carry a risk that you may lose more than your initial deposit. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act.

App Store is a service mark of Apple Inc. Google Play is a trademark of Google Inc. Amazon Appstore is a trademark of Amazon.com, Inc., or its affiliates. Windows Store is a trademark of the Microsoft group of companies.